Goodman Group (GMG.AX)
Real Estate · ASX · Australia
Fundamentals
Valuation and ratings
Goodman Group trades at A$29.20, which is 59% above the A$11.99 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 60 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 35.7 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Goodman Group
Goodman Group is a provider of essential infrastructure. It owns, develops and manages high quality, sustainable logistics properties and data centres in major global cities, that are critical to the digital economy. Goodman has operations in key consumer markets across Australia, New Zealand, Asia, Europe, the United Kingdom, and the Americas. Goodman Group, comprised of the stapled entities Goodman Limited, Goodman Industrial Trust and Goodman Logistics (HK) Limited, is the largest property group on the Australian Securities Exchange, a top 20 entity by market capitalisation, and one of the largest listed specialist investment managers of industrial property globally The Group's property portfolio includes logistics and distribution centres, data centres, warehouses, light industrial, multi-storey industrial, and business parks. Goodman takes a long-term view, investing significantly alongside its capital Partners in its investment management platform and concentrating the portfolio where it can create the most value for customers and investors. Goodman Group was established on April 05, 2002 and incorporated in Australia.
Common questions
Is Goodman Group (GMG.AX) undervalued?
Against our discounted cash flow estimate of A$11.99, GMG.AX at A$29.20 is 59% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is GMG.AX's P/E ratio?
GMG.AX trades at 35.7 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.